Shadow toll

First proposed by the UK Government in 1993, shadow tolls have been widely used in the UK and also to a more limited extent in other countries, including Belgium, Canada, Finland, Netherlands, Spain and the United States. Portugal introduced schemes in 1999 but replaced these with the public tolls in 2004.

The use of shadow tolls in the UK has reduced over time with PFI funded project payments being made based primarily on the availability of the road, and not on the number of vehicles using it. Beyond a certain number of vehicles, the 'toll' paid by the government in more recent schemes is zero.{{cite web|url=http://www.freshfields.com/publications/pdfs/2007/may28/18802.pdf|title=Road Projects|quote=In recent UK projects there has been movement away from demand-based payment mechanisms to those which more clearly link the project company’s entitlement to revenues, which are still generated by payments from the host government, to its achievement of certain pre-agreed, quantifiable availability, performance and service/output criteria. These criteria might include: ‘ride quality’, whether sections of the road are closed (in whole or in part) or traffic flow is otherwise impeded, safety performance and/or traffic monitoring.|publisher=FreshFields|accessdate=2012-04-09|url-status=dead|archiveurl=https://web.archive.org/web/20081206173111/http://www.freshfields.com/publications/pdfs/2007/may28/18802.pdf|archivedate=6 December 2008|df=dmy-all}}

The World Bank observes that transaction costs 'can be very high' due to the difficulties surrounding legal arrangements and the need for continuous vehicle counts and that use of shadow tolls has led to significant criticism in The Netherlands.{{cite web|url=http://www.worldbank.org/transport/roads/toll_rds.htm|title=Toll Roads and Concessions|publisher=World Bank|quote=The benefits of this system do not therefore stem from the development of a new source of funds, or from making users internalize the external costs of their travel, but rather from: the Government commitment to continued financial support over several years, the involvement of the private sector and their responsibility for efficient delivery of service... The shadow toll approach does not require traffic to slow for toll collection (and does not require additional land take for widening the road around toll booths). However because it requires the Government and private sector to agree the vehicle counts and because of the difficulties surrounding legal arrangements, the transaction costs can be very high. This has led to significant criticism of the approach in the Netherlands.|accessdate=2012-04-08}}

The Portuguese government removed shadow tolls in 2004 after finding that "payment obligations in connection with the shadow toll system were not compatible with the need to spend on improving and maintaining the other national motorways".{{cite web|url=http://www.mondaq.com/article.asp?articleid=31687|title=Portugal: Shadow Toll System is Replaced}}

;United Kingdom

• M1 Lofthouse to Bramham link road{{cite web|url=http://www.highways.gov.uk/roads/projects/5451.aspx|title=M1-A1 Link Road (Lofthouse to Bramham)|publisher=Highways Agency|accessdate=2012-04-08|url-status=dead|archiveurl=https://web.archive.org/web/20120301002336/http://www.highways.gov.uk/roads/projects/5451.aspx|archivedate=1 March 2012|df=dmy-all}}
• M40 Denham to Warwick{{cite web|url=http://www.highways.gov.uk/roads/projects/3769.aspx|title=M40 Denham to Warwick|publisher=Highways Agency|accessdate=2012-04-08|url-status=dead|archiveurl=https://web.archive.org/web/20120406170233/http://www.highways.gov.uk/roads/projects/3769.aspx|archivedate=6 April 2012|df=dmy-all}}
• M80 Stepps to Haggs{{cite web|url=http://www.pi.bilfinger.com/C12573D8003E9552/CurrentBaseLink/W27NKDVW511DEBBEN|title=M80 Stepps to Haggs, Scotland|accessdate=2012-04-08|url-status=dead|archiveurl=https://web.archive.org/web/20130304235311/http://www.pi.bilfinger.com/C12573D8003E9552/CurrentBaseLink/W27NKDVW511DEBBEN|archivedate=4 March 2013|df=dmy-all}}
• A1 Darrington to Dishforth{{cite web|url=http://www.highways.gov.uk/roads/projects/5541.aspx|title=A1 Darrington to Dishforth|publisher=Highways Agency|accessdate=2012-04-08|url-status=dead|archiveurl=https://web.archive.org/web/20100417222742/http://www.highways.gov.uk/roads/projects/5541.aspx|archivedate=17 April 2010|df=dmy-all}}
• A1(M) Alconbury to Peterborough{{cite web|url=http://www.highways.gov.uk/roads/projects/4442.aspx|title=A1(M) Alconbury to Peterborough|publisher=Highways Agency|accessdate=2012-04-08|url-status=dead|archiveurl=https://web.archive.org/web/20110827095144/http://www.highways.gov.uk/roads/projects/4442.aspx|archivedate=27 August 2011|df=dmy-all}}
• A13 Limehouse to Wennington (Greater London){{cite web|url=http://www.highways.gov.uk/roads/2745.aspx#e|archive-url=http://webarchive.nationalarchives.gov.uk/20101111013919/http://www.highways.gov.uk/roads/2745.aspx#e|url-status=dead|archive-date=2010-11-11|title=DBFO Briefing Pack - 2b - A13 Thames Gateway DBFO project fact sheets|publisher=Highways Agency|accessdate=2012-04-08}}
• A19 Dishforth to Tyne Tunnel{{cite web|url=http://www.highways.gov.uk/roads/projects/5283.aspx|title=A19 Dishforth to Tyne Tunnel|publisher=Highways Agency|accessdate=2012-04-08|url-status=dead|archiveurl=https://web.archive.org/web/20120329130049/http://www.highways.gov.uk/roads/projects/5283.aspx|archivedate=29 March 2012|df=dmy-all}}
• A249 Stockbury (M2) to Sheerness{{cite web|url=http://www.highways.gov.uk/roads/projects/3981.aspx|title=A249 Stockbury (M2) to Sheerness DBFO Contract|publisher=Highways Agency|accessdate=2012-04-08|url-status=dead|archiveurl=https://web.archive.org/web/20120406222740/http://www.highways.gov.uk/roads/projects/3981.aspx|archivedate=6 April 2012|df=dmy-all}}
• A30 / A35 Exeter to Bere Regis{{cite web|url=http://www.highways.gov.uk/roads/projects/3505.aspx|title=A30 Exeter to Bere Regis|publisher=Highways Agency|accessdate=2012-04-08|url-status=dead|archiveurl=http://webarchive.nationalarchives.gov.uk/20120810121037/http://www.highways.gov.uk/roads/projects/3505.aspx|archivedate=10 August 2012|df=dmy-all}}
• A417 Gloucester to Cirencester{{cite web|url=http://www.highways.gov.uk/roads/projects/3590.aspx|title=A419/A417 Swindon to Gloucester|publisher=Highways Agency|accessdate=2012-04-08|url-status=dead|archiveurl=https://web.archive.org/web/20120204040347/http://www.highways.gov.uk/roads/projects/3590.aspx|archivedate=4 February 2012|df=dmy-all}}
• A419 Swindon to Cirencester
• A50 Stoke to Derby link{{cite web|url=http://www.highways.gov.uk/roads/projects/4387.aspx|title=A50/A564 Stoke to Derby Link|publisher=Highways Agency|accessdate=2012-04-08|url-status=dead|archiveurl=https://web.archive.org/web/20101220051836/http://www.highways.gov.uk/roads/projects/4387.aspx|archivedate=20 December 2010|df=dmy-all}}
• A55 Llanfairpwll to Holyhead{{cite web|url=https://www.dailypost.co.uk/news/north-wales-news/shadow-a55-toll-must-paid-21460343|title=The shadow A55 toll that must be paid every year and is costing taxpayers millions|publisher=North Wales Live / Daily Post|accessdate=2022-02-24|date=2021-09-03}}
• A69 Carlisle to Newcastle{{cite web|url=http://www.highways.gov.uk/roads/projects/5095.aspx|title=A69 Carlisle to Newcastle|publisher=Highways Agency|accessdate=2012-04-08|url-status=dead|archiveurl=https://web.archive.org/web/20120116135105/http://www.highways.gov.uk/roads/projects/5095.aspx|archivedate=16 January 2012|df=dmy-all}}

;Belgium

• A605 / E25 Cointe Tunnel{{citation needed|date=April 2012}}

;Finland

• VT4 / E75 Järvenpää-Lahti{{citation needed|date=April 2012}}

;Netherlands

• A9 Wijkertunnel{{citation needed|date=April 2012}}

;Spain

• Madrid M-45 Road{{citation needed|date=April 2012}}
• Rande Bridge

;Australia

• Peninsula Link: Victoria, Australia

;Israel

• Highway 431

;Canada

• New Brunswick Highway 2 Fredericton to Moncton{{cite web|url=http://www.tollroadsnews.com/node/2583|title=NEW BRUNSWICK:Tolls Ended on Fredericton-Moncton TR|work=tollroadnews|quote=Maritime Roads Development Corp (MRDC), the Dragados-led concessionaire has gotten a check for $20m for compensation, and for the remainder of its 30 year concession it will be paid by the provincial government on a per vehicle basis – ‘shadow tolls.’ MRDC will install inductive loops in the pavement to count and classify vehicles at four points along the road, each close to the two constructed and two planned toll plazas. Vehicles will be classed as cars and larger vehicles with a shadow toll due MRDC of $4 and $12 for each full passage. This compares to about $6 and $18 real tolls in the concession agreement. There is a cap on the amount of shadow toll revenues, but no downside guarantees. The absence of tolls will encourage traffic on the motorway which will save both distance (29km) and time as compared to existing alternative routes.|accessdate=2012-04-08|url-status=dead|archiveurl=https://web.archive.org/web/20080904220407/http://www.tollroadsnews.com/node/2583|archivedate=4 September 2008|df=dmy-all}}

• Toll road
• Highways Agency

{{reflist}}

• [https://web.archive.org/web/20110225035719/http://www.highways.gov.uk/roads/3009.aspx About DBFO] UK Highways Agency
• [https://web.archive.org/web/20071026105400/http://www.highways.gov.uk/roads/2646.aspx DBFO] UK Highways Agency
• [https://archive.today/20070611182443/http://www.highways.gov.uk/roads/2737.aspx Summary of UK Parliamentary questions relating to DBFO roads] UK Highways Agency
• [https://www.fhwa.dot.gov/ipd/p3/defined/design_build_finance_operate.htm Design Build Finance Operate] Federal Highways Administration
• [http://blogs.ft.com/money-supply/author/chrisgiles/#axzz1rRCykwsR All that money growing on trees] FT.com blog March 2012
• [http://anotherangryvoice.blogspot.com/2011/08/shadow-toll-pfi-siphon-government.html Criticism of A1 Darlington to Dishforth scheme]

Category:Toll (fee)

Category:Roads in the United Kingdom

Category:Public–private partnership

• [https://bidenwhitehouse.archives.gov/briefing-room/statements-releases/2022/01/31/biden-administration-releases-bipartisan-infrastructure-law-guidebook-for-state-local-tribal-and-territorial-governments/ A GUIDEBOOK TO THE BIPARTISAN INFRASTRUCTURE FOR STATE, LOCAL, TERRITORIAL, AND TRIBAL GOVERNMENTS AND OTHER DEPARTMENTS]